Image source: Shutterstock

Highlights

  • Exports restart following major reconstruction of cyclone-damaged wharf.
  • Over 317,000 labour hours and extensive material removal involved in recovery.
  • Operations are expected to normalise over the 2025–26 financial year.

South32 Limited (ASX: S32), headquartered in Perth, was spun off from BHP in 2015 and is listed on the ASX, LSE, and JSE. It operates mining and metals assets across Australia, South Africa, and South America. The company has resumed manganese exports from its Groote Eylandt Mining Company (GEMCO) site in the Northern Territory, marking the end of a year-long suspension triggered by severe cyclone damage. The export halt, which began in March 2024 after Tropical Cyclone Megan, caused significant disruption to the company's operations on Groote Eylandt, a key source of manganese for the company.

The cyclone resulted in widespread infrastructure damage, including the destruction of the mine's 60-year-old wharf. A bulk carrier collided with the structure during high winds and tides, rendering the facility inoperable. In addition to the wharf damage, the mine experienced flooding, which affected its pits, roads, and a critical bridge.

In a statement released this week, South32 confirmed that manganese shipments have restarted following a complex and large-scale recovery operation. According to the company, the reconstruction effort involved around 317,000 hours of labour and the removal of approximately 970 tonnes of steel and 740 tonnes of concrete.

Vanessa Torres, South32’s Chief Operating Officer, noted that the first export vessel docked earlier this week, signalling a significant milestone since the mine was shuttered. She added that the new wharf was rebuilt using modern technologies and is designed to be more resilient to extreme weather events, potentially reducing the risk of future operational interruptions.

The company has maintained its workforce of about 1,000 employees throughout the closure period, avoiding layoffs during the prolonged suspension in mining and exports. The retention of personnel is expected to facilitate a smoother transition as operations ramp back up.

Local political representatives welcomed the resumption of exports, emphasizing the economic benefits to both the island and the wider Northern Territory. Arnhem MLA Selena Uibo commented on the importance of manganese exports to the regional economy and expressed optimism about the mine's return to activity.

Financially, the impact of the cyclone has been substantial. In its 2024 annual report, South32 estimated a loss of USD 93 million from halted operations. Repair costs for the wharf and related infrastructure were projected at USD 125 million. However, the company disclosed receiving USD 555 million in insurance payments to offset the damage-related costs.

South32 now expects export volumes from the GEMCO mine to increase over the June 2025 quarter, with a return to typical production and sales levels projected during the 2025–26 financial year.

The total cost of the recovery effort will be disclosed with South32’s upcoming annual financial results. Until then, investors and industry observers will continue monitoring the pace of the mine’s return to full operational capacity, as well as any potential long-term impacts of the cyclone event on future infrastructure planning.